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Strategic Direction Strategic Direction 2019 – 2021 photo: Roberta Franchuk Pembina Institute Pembina Robertaphoto: Franchuk Our vision for Canada’s clean energy future Canada is at a crossroads. The global oil and gas sector is in the midst of profound shifts, the cost of renewables is plummeting and droughts, floods and fires are becoming more common and more severe. Amidst this change, the Pembina Institute sees a bright future for Canada. A future in which clean energy drives a prosperous, connected economy and our activities stop contributing to climate change. A future built on bold and inclusive solutions that improve the quality of life for all people living in Canada and leave no one behind. We are driving this vision forward. The challenge The conversation about Canada’s clean energy future is becoming increasingly polarized. Charged rhetoric is derailing progress and threatens to continue to pull us further apart. At the same time, the reality of climate change is calling upon us to act even more urgently. It is more critical than ever that we find ways to bridge divides, bring good, credible ideas to the table and recognize our shared values. The Pembina Institute’s role Over the past 30 years, the Pembina Institute has been working side by side with industries, governments, businesses and communities to break new ground in climate and energy policy in Canada. It’s in our DNA to build unlikely partnerships and advocate together for inclusive and equitable policy solutions. We are curious and not afraid to ask hard questions to understand different perspectives. We produce evidence-based ideas that are informed by data and experience and we hold the bar based on what is possible, but also practical. In today’s energy and climate conversation, the Pembina Institute’s role is more important than ever. 2 Strategic Direction 2019-2021 Mission To advance a prosperous clean energy future for Canada through credible policy solutions that support communities, the economy and a safe climate. Vision The Pembina Institute envisions a world in which our needs are met in ways that protect natural ecosystems; ensure clean air, land and water; stop contributing to climate change; and promote a just global community. Core values Climate change threatens everyone. We must evolve how energy is created and consumed through solutions based on: Equity Curiosity Evidence-based Practicality We believe in the necessity of We believe in pursuing new and We believe building practical, inclusive and equitable solutions innovative possibilities, challenging thinking lasting solutions requires us to seek that enhance our quality of life and our own ideas and striving to We believe that evidence should common ground and collaborate leave no one behind. understand differing perspectives. determine our policies, inform our with others. direction and drive progress. 3 Strategic Direction 2019-2021 Our vision for Canada’s clean energy future We envision a world in which we produce and use energy in a way that creates: 1. A competitive economy that supports good, well-paying jobs in sectors that will be in demand as the global economy decarbonizes. 2. A decarbonized electricity grid that provides resilient, clean energy to our homes, buildings and industries, driving clean innovation and community empowerment. 3. A transportation system that transforms passenger and goods movement to support clean air and efficient land use, and helps achieve inclusive, affordable, and healthy communities. 4. Beautiful, affordable, and healthy homes and buildings that emit no carbon pollution and act as integration hubs for the transportation system and smart grids of tomorrow. 5. An energy system that recognizes the shifting role for fossil fuels, demands accountability for negative impacts, ensures the oil and gas industry does its fair share to reduce emissions consistent with our international objectives, and increasingly relies on clean options to meet our needs. The following pages outline our work under each of these goals. 4 Strategic Direction 2019-2021 Goal 1: A competitive economy that supports good, well-paying jobs in sectors that will be in demand as the global economy decarbonizes. Our work towards this goal includes ensuring that: • Economies that rely on oil and gas development are diversified to reduce risk of demand volatility and decline. • The competitiveness of Canada’s oil and gas resources is increased by reducing their contribution to Canada’s carbon emissions. • Canada has a plan to support workers impacted by the decarbonization of the global economy. • Between 2020-2022, pollution is priced in every jurisdiction across Canada to incentivize investment in a competitive clean economy while keeping life affordable for Canadians and protecting industry competitiveness. 5 Strategic Direction 2019-2021 Goal 2: A decarbonized electricity grid that provides resilient, clean energy to our homes, buildings and industries, driving clean innovation and community empowerment. Our work towards this goal includes ensuring that: • Gas lock-in is avoided by ensuring policies do not incent development of further gas fired generation, but rather leap to clean and renewable electricity generation. • Coal phase-out continues on projected timeline, and coal equivalency agreements are stringent. • Private sector investment in renewables increases and in Alberta reaches 500 MW by 2021. • Grid interconnection issues are addressed and energy delivery infrastructure is smart, connected and efficient. • Remote communities in particular are supported to transition to clean energy. By 2022, remote communities have deployed 20 diesel reduction projects that collectively reduce annual diesel consumed by 10-15 million litres. • Barriers to the clean energy transition, including diesel subsidies and unequitable power purchase rates, are beginning to shift, with the support and leadership of provincial and territorial governments that are upholding their commitments to reconciliation. 6 Strategic Direction 2019-2021 Goal 3: A transportation system that transforms passenger and goods movement to support clean air and efficient land use, and helps achieve inclusive, affordable, and healthy communities. Our work towards this goal includes ensuring that: • A holistic approach is taken to transportation planning to unlock deep decarbonization that reduces travel demand, shifts to lower emitting modes and improves fuel efficiency and fuel switching. • By 2022-23, the clean fuel standard sets a new paradigm for fuel regulation across Canada. The CFS creates investment incentives for new low-carbon fuels production facilities and increased clean fuels supply, including more EV deployment and charging infrastructure. The policy delivers a substantial mitigation outcome of 30 Mt CO2e annually by 2030. • Canadian market share of zero-emissions passenger vehicles is increased to 10% of new vehicles by 2025 and 100% of new vehicles by 2040. • By 2030, Canada-wide, the growth in carbon pollution from freight is decoupled from growth in GDP. • By 2030, planning for goods movement is integrated in transportation policies and network design in cities. • By 2030, businesses are adopting technologies and operational models that optimize delivery efficiencies and reduce freight-related emissions. • By 2031, municipalities show a greater willingness to increase density and integrate a mix of land uses, affordable housing and employment around major transit station areas, with demonstrable success in Ontario’s Greater Golden Horseshoe. 7 Strategic Direction 2019-2021 Goal 4: Beautiful, affordable, and healthy homes and buildings that emit no carbon pollution and act as integration hubs for the transportation system and smart grids of tomorrow. Our work towards this goal includes ensuring that: • There is a federal and provincial roadmap to new buildings achieving low carbon requirements for new construction by 2032, which front-loads the market transformation efforts and accelerates development of climate-resilient building codes. • B.C. serves as a model for the rest of Canada with a comprehensive building decarbonization policy capable of reducing emissions from buildings by 40% by 2030 and 100% before 2050. This policy features a retrofit strategy that leverages land use, regulations, industry professionalization, energy performance disclosure, and innovative financing options to spur a retrofit economy able to reach 30,000 houses, 17,000 apartments units, and three million square feet of commercial space, each year between now and 2050. • There is a provincial retrofit strategy that leverages land use, regulations, industry professionalization, energy performance disclosure, and innovative financing options to spur a retrofit economy able to reach 3% of buildings per year. 8 Strategic Direction 2019-2021 Goal 5: An energy system that recognizes the shifting role for fossil fuels, demands accountability for negative impacts, ensures the oil and gas industry does its fair share to reduce emissions consistent with our international objectives, and increasingly relies on clean options to meet our needs. Our work towards this goal includes ensuring that: • By 2021, all new high-carbon industrial and energy projects nationally are subject to robust review that includes a decision framework that assesses viability in a low-carbon economy. • All new natural gas and liquefied natural gas development is near-zero emissions. • Canada’s natural gas sector is increasingly moving towards near-zero emissions to ensure
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